1 Independent Communications Authority of South Africa Presentation to the Portfolio Committee of Communication on ICASA Strategic Plan and Budget 18 June 2009

2 Agenda Vision and Mission Value Drivers Strategic Objectives Organogram Licensing and Compliance Markets and Competition Engineering and Technology Consumer Affairs Budget Questions and Answers

3 Vision To be a catalyst in the transformation of the country into an information oriented society and knowledge based economy. Mission To create a competitive environment for delivering a wide range of high quality services at affordable prices in order to assist in the overall economic growth and social development of the country. Vision and Mission

4 In-depth understanding and effective regulation of the communications sector. Functional effectiveness. World class execution of all its functions. Value Drivers

5 Promote and facilitate convergence of telecommunications, broadcasting, postal and information technology sector. Encourage the development of a competitive and effective communications sector. Ensure efficient and effective use of radio frequency spectrum. Promote investment, economic growth and innovation in the communications sector within a stable and predictable regulatory regime. Strategic Objectives

6 Facilitate reduction in the cost of doing business. Promote affordable delivery of services and universal access. Encourage research and development in the ICT sector. Promote the empowerment of historically disadvantaged persons, opportunities for youth and challenges for people with disabilities. Promote interest of consumers with regard to price, quality and variety of communications services. Strategic Objectives

7 Organogram CHAIRPERSON P MASHILE CHAIRPERSON P MASHILE COUNCIL CEO K MOTLANA CEO K MOTLANA CLR: SIBANDA CLR: MAKHAKHE CLR: NTOMBELA CLR: BATYI GM: LICENSING & COMPLIANCE GM: MARKETS & COMPETITION GM: ENG. & TECHNOLOGY GM: COMPLIANCE, RISK & AUDIT GM: CFO SM: IT SM: COMMUNICATION GM: ADMINISTRATION GM: HR GM: CONSUMER AFFAIRS GM: LEGAL & CCC CLR: ZOKWE CLR: VAN ROOYEN CLR: SOCIKWA CLR: NKUNA

8

9 Licensing Mobile Broadcasting Services. Broadband Infraco. Individual ECNS – Broadcasting Services. Individual Commercial Radio (Gauteng, KZN and Cape Town). Migration of Analogue TV to Digital (Assignment of DTT Channels/Multiplexes – SABC, M-Net, e-TV and TBN).

10 Licensing Review of Regulations: - - Standard Terms and Conditions - Process and Procedures. Licensing of Class Broadcasting, ECS,ECNS and Courier Services (ad hoc). Amendments and Transfers of Licences (ad hoc).

11 Compliance Publication of monitoring report on National and Provincial Elections. Review of Universal Service and Access Obligations Framework. Promulgation of Sec. 8 (4) Regulations. Compliance Procedure Manual. Compliance by Broadcasting, ECS, ECNS and Postal Services.

12 Compliance Preparation for Local Government Elections.

13

Markets & Competition Review and development of broadcasting regulations in respect of –subscription broadcasting: must carry obligations –digital terrestrial television broadcasting –the release of spectrum from the digital switch over programme: “digital dividend” policy –advertising, infomercials and sponsorships –codes of conduct/practice for broadcasters –sports broadcasting rights –Video On Demand (VOD) and IPTV –South African local content review –ownership and control for commercial broadcasting. 14

Markets and Competition (cont.) Ensure fair, transparent and non discrimination allocation of numbers to licensees –process numbering applications in terms of the National Numbering Plan and maintenance of the central numbering database –develop web-based application for public access to central numbering database –conduct the Number Audit –review of the National Numbering Plan in line with the ECA –finalise carrier pre-selection regulations –review of Number Portability : Capacity building workshops held to address numbering challenges presented by the ECA. 15

Markets and Competition (cont.) Economic and financial analysis in respect to postal services –development of economic regulatory framework for reserved postal services draft regulations for Regulatory Financial Reporting framework framework for tariff setting –SAPO 2010/2011 Tariff Review –review of the unreserved postal services regulations. 16

Markets and Competition (cont.) Economic and financial analysis with respect to electronic communications –tariff lodgement and monitoring framework –Telkom 2009/2010 tariff regime (basket of services) –analysis of Regulatory Financial Reports (COA/CAM) analysis of historic Telkom and mobile operators reports review conceptual framework and investigate reporting requirements pertaining to pro-competitive remedies. 17

Markets and Competition (cont.) Competition Framework and Market Analysis –develop framework for competition in broadcasting –develop framework for implementation of sec 67 of the ECA –conduct market studies in terms of section 67.4 of the ECA –develop regulations for Local Loop Unbundling (LLU) –implement Handset Subsidy Regulations –develop regulations on interconnection and facilities leasing and implementation thereof –ensure the effective assessment of interconnection and electronic communications facilities leasing agreements –identify framework for facilities leasing and provide framework for access –research trends and developments in the ICT sector and introduce basic framework for regulatory impact assessment (RIA). 18

19

Finalisation of the following initiatives: –regulations for and implementation of the new spectrum fees framework –regulations for high demand spectrum bands –review of the national radio frequency plan –review of radio regulations in line with the ECA –broadcasting spectrum plan and assignments to facilitate digital migration. Engineering and Technology 20

Engineering and Technology (cont.) –development of a concise spectrum licensing regime in line with international trends –review of equipment type approval framework in line with international trends –development of assignment and co-ordination “policies” and procedures –spectrum audit development of a migration plan as part of the national radio frequency plan –improve spectrum monitoring architecture –development of robust methodologies for spectrum monitoring and monitoring of QoS –research and advisory program to develop technical capacity and advise on spectrum and technology issues. 21

22

23 Consumer Protection Receive and resolve consumer complaints. Increase ICASA’s visibility and operational reach in rural and under-serviced areas. Improve consumer protection through research and monitoring. Co-ordinate the Consumer Advisory Panel. Extend consumer awareness through workshops, radio interviews and media advertising. Establish and launch Consumer Representative Forums. Maintain relationships with stakeholders on consumer protection.

Consumer Protection Finalisation of the following regulations: -End-User and Subscriber service Charter -Conveyance of Mail -E-Rate. 24

25

26 Budget Transfers and subsidies received Grants from DoC269,607,000 Outstanding postal regulatory functions grant10,000,000 General & Administration expenses37,034,291 Staff costs146,752,506 Audit fees1,930,000 Other operating expenses58,228,203 Project expenses 35,662,000 Licensing and Compliance 6,810,000 Markets and Competition 7,770,000 Engineering 5,350,000 Consumer Affairs 4,510,000 Support function projects 11,222,000 Total expenditure 2009 – ,607,000 Baseline allocation279,607,000

27